How do I apply for a Debt Relief Order?

Contacting an Approved Intermediary

In order to apply for a Debt Relief Order, a person needs to contact one of the Competent Authorities, who will put them in touch with an Approved Intermediary.

The Client is then sent a Debt Relief Order Guide to read. This explains the purpose of the Debt Relief Order and outlines what a Debt Relief Order is. It is essential that the applicant read this thoroughly so that they are fully aware of the implications of being in a Debt Relief Order.

Having read the guide, if they decide to go ahead with this option, they will need to provide the Intermediary with specific information about their personal situation. This includes information on the following –

• Personal details
• Employment details, where applicable
• Details of assets - eg car, pension funds, savings etc
• Bank account information
• Information on any current insolvency arrangements
• Names, addresses, account numbers and up to date balances of all qualifying debts
• Details of any priority arrears - e.g. council tax, rent arrears, utility arrears, overpayments etc
• Financial statement
• Information on what lead to the current financial problems

The Intermediary will then input this information onto the Insolvency Services system, providing that the Debt Relief Order criteria has been met.

Once the information has been input, a Barcode letter is generated. This letter carries the details of the applicant, quotes their unique Debt Relief Order reference number and instructions on what happens next.

The applicant is sent the letter, which they need to provide to the Payzone outlet, when paying their £90 fee. If the fee is being paid in instalments, the letter must be produced when making payment to ensure that the instalment is credited to the Applicants Debt Relief Order application.

Once the fee has been paid in full and the applicant has notified the Intermediary of this, the Debt Relief Order application is submitted electronically to the Insolvency Service.

A copy of the submitted details are provided to the applicant and they are asked to sign the paperwork and sent to the Debt Relief Order Unit.

If you would like more information please contact us Money Advice Direct on 0800 074 6918 or fill in our form by clicking here.

If you are unsure as to whether an Debt Relief Order is the best way to solve your debt problems please call us on 0800 074 6918.

If you wish to discuss the Debt Relief Order procedure and understand how it can help you please complete the following form or telephone freephone 0800 074 6918.

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Listed below are some of the frequently asked questions relating to Debt Relief Orders

• Introduction to Debt Relief Orders
• What is a Debt Relief Order?
• What debts can be included in a Debt Relief Order?
• What debts are excluded from a DebtRelief Order?
• Is my Hire Purchase affected by a Debt Relief Order?
• Is my Motability Car Scheme affected by a Debt Relief Order?
• Who can apply for a Debt Relief Order?
• What is a Competent Authority?
• What is an Approved Intermediary?
• What is the cost of a Debt Relief Order?
• Why should I consider a Debt Relief Order rather than Bankruptcy?
• How do I apply for a Debt Relief Order?
• Who decides if my Debt Relief Order is approved?
• What if my circumstances change whilst I am in a Debt Relief Order?
• How will my creditors know I am in a Debt Relief Order?
• What happens to interest and charges if I am in a Debt Relief Order?
• Rent Arrears and Debt Relief Order's
• Will I be allowed a reasonable standard of living?
• Debt Relief Order Case Study 1
• Debt Relief Order Case Study 2
• Debts incurred after the granting of a Debt Relief Order
• What are the restrictions of a Debt Relief Order?
• What happens if you are dishonest before or during a Debt Relief Order?
• How will a Debt Relief Order affect you?
• What debts are not covered by a Debt Relief Order?
• Will a Debt Relief Order (DRO) affect my council tenancy as I am in debt?
• Can I apply to the Police if I have a Debt Relief Order (DRO)?
• Does getting a job after getting a Debt Relief Order (DRO) affect me, because I am seriously in debt?